Farm residues can generate 18,000 MW power annually, boost circular economy: Report

India’s agricultural residues have the potential to generate over 18,000 MW of power annually, the Centre said in a report titled ‘Circular Economy in Agriculture: Waste to Wealth’ on Tuesday.

In addition to energy generation, these residues can be used to produce nutrient-rich organic fertilisers. Such fertilisers help enhance soil health and reduce dependence on chemical inputs in agriculture, the report added.

Advertisement

In India, while agriculture plays a pivotal role in ensuring food and nutritional security, it also generates significant waste during cultivation, harvesting, and processing. Inadequate management of agricultural waste has become a substantial source of environmental contamination, affecting air, soil, and water. The country generates an estimated 350 million tonnes of agricultural waste annually, comprising crop residues, husk, straw, and by-products from food processing activities.

Globally, an estimated 1.3 billion tonnes of food produced for human consumption are wasted annually, while nearly one-third of biodegradable municipal solid waste is generated in household kitchens. When organic waste, such as food waste, agricultural residues, and other biodegradable municipal waste, is inadequately managed, it decomposes in landfills, releasing methane and other greenhouse gases, the report noted.

The importance of adopting a “waste-to-wealth” approach lies in reimagining waste as a valuable resource rather than an economic burden and environmental problem. It necessitates rethinking material flows within the economy, emphasising the recovery, reuse, and reintegration of value.

The Centre, in its report, suggested that this approach is guided by the principles of the six Rs — Reduce, Reuse, Recycle, Refurbish, Recover, and Repair — ensuring that materials remain in productive use for extended periods. A defining feature of this model is “true recycling”, in which waste is converted back to its original form without compromising quality, enabling higher-value recovery and avoiding the losses associated with downcycling.

The government is implementing various policies to promote circularity in agriculture and allied sectors by converting waste into valuable resources. Initiatives such as Galvanising Organic Bio-Agro Resources Dhan (GOBARdhan) and Crop Residue Management are transforming agricultural, animal, and food waste into organic manure, the report said.

India’s shift towards a circular economy in agriculture demonstrates that environmental sustainability and economic growth can be mutually reinforcing. While the scale of agricultural and food waste remains a significant concern, targeted policies, strategic infrastructure investments, and coordinated institutional action are increasingly converting waste into energy, organic inputs, water resources, and livelihood opportunities.